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2016 (12) TMI 1407 - AT - Income TaxLevy of penalty under section 271(1)(c) - assessment proceedings under section 153A - Held that:- Assessing Officer while completing assessment proceedings under section 153A r.w.s. 143(3) of the Act in respect of additional income offered by the assessee pursuant to search, was satisfied that the assessee has concealed income and also furnished inaccurate particulars of income. It may be reiterated here that no further addition was made by the Assessing Officer except the additional income which was offered by the assessee in its return of income. So at best, it is the case of concealment of income where the assessee had offered the income on the basis of incriminating documents found during the course of search. Assessing Officer does not record satisfaction in this regard but is satisfied that penalty for concealment under section 271(1)(c) of the Act is to be levied on account of either concealment of income or furnishing of inaccurate particulars of income. The notice issued under section 274 r.w.s. 271(1)(c) of the Act also suffers from infirmity, where either of the limbs has not been struck off. Hence, there is vagueness and ambiguity in the notice issued. Since the assessee in the present set of facts was not aware of exact charge of the Department against him, then the initiation of penalty proceedings are vitiated and the same are to be quashed. Relying on the ratio laid down by the Pune Bench of Tribunal in Kanhaiyalal D. Jain Vs. ACIT (2016 (12) TMI 1238 - ITAT PUNE ), we hold that penalty notice issued in the present case suffers from infirmity i.e. lack of satisfaction and lack of notice being issued in making the assessee aware of exact charge against him, hence, the same is quashed. - Decided in favour of assessee
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